How AI may help Nvidia to become first trillion-dollar chip-making company

The artificial intelligence boom has impacted the entire tech industry. According to a report by Reuters, US-based chipmaker Nvidia recently closed in on a trillion-dollar market value after the company’s shares grew by 25%. The stock value increased after the company reported major earnings from AI chips. This surge also forced Wall Street to reanalyse the revenue potential for the chipmaker from an AI boom. In 2023, the semiconductor company’s shares grew more than 160%. This surge added $586 billion to the company’s market value and made it the fifth most valuable US company after Apple, Microsoft, Google-parent Alphabet and Amazon.

How Nvidia shifted its focus from gaming to AI
Nvidia’s chipsets are primarily used in video games. Over the last few years, the company pivoted to the data centre market.